International Finance

The use of gold as a means of exchange, payment, and the measure of value
dates back centuries ago, however the establishment of the gold standard in
official terms began around 1819 as a result of laws passed by the British
Parliament referred to as the Resumption Act.1 The
gold standard was eventually suspended in 1914 during the 1st World War and
re-instituted from 1918-1939. In the post World War II period, the Bretton
Woods agreement led to the establishment of the fixed exchange rate system,
which lasted from 1946-1973.

The Bretton Woods system, established in 1944 with 44 countries participating in the conference, created an international monetary structure that maintained international financial stability. The Bretton Woods system focused on establishing standards for regulating exchange rates, a process for measuring and reporting national accounts or balance-of-payments, as well as stabilizing international reserves. 2.

The Bretton Woods Conference led to the formation of two important international institutions that still play a vital role in today's world economy, which are the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development, what is presently the World Bank. Robert Dunn and John Mutti in their publication, International Economics provide brief descriptions of both organizations, which are listed below:3.

International Monetary Fund (IMF) - An institution that was founded at the Bretton Woods conference in 1944 and lends money to countries facing large national deficits. The IMF also oversees the foreign exchange rate system and provides research and advisory services for member countries in the areas of monetary economics and international finance. The IMF is located in Washington, D.C.

Image (above):
Hanjin company container ship at port in the Port of Vancouver
Courtesy of Joseph Sams.

International Bank for Reconstruction and Development (IBRD) "World Bank" — Founded in 1944, this institution is responsible for lending money to developing countries. It was originally intended to finance both reconstruction from World War II and development projects in developing countries. The "World Bank" also conducts research and provides advice on the topic of development economics. The World Bank is also located in Washington, D.C.

International finance encompasses the study of international monetary economics, which involve the interaction of international transactions. These transactions consist of factors, such as national income, money and prices. 4

The international monetary system is made up of institutions, international organizations, governments, and private economic entities that all participate in the exchange of financial assets worldwide.

Balance of payments accounting is an important component to examining international finance and international financial flows. The balance of payment accounts is the accounting system for all international commercial and financial transactions of an individual country. The balance of payments is divided into three separate accounts, the current account, capital account, and the financial account. A description of each balance of payment account is provided below.5

Current Account - A record of transactions in goods, services, investments income, and unilateral transfers between residents of a country and the rest of the world. It tracks the flow of goods and services into and out of the country.

Capital Account - A record of transactions in highly specialized financial assets and liabilities between the residents of a nation and the rest of the world. The capital account records the flow of financial capital and other assets.

Financial Account - Part of the balance of payments that tracks capital flows between a national economy and the rest of the world.

This section includes a number of resources on the international monetary system. The sources listed in this section provide access to information in areas such as, international finance theory and policy, scholarly resources covering international finance, as well as the actors and components of the international financial system. Other sources include online reference resources on international finance, and publications from international organizations and institutions involved in, as well as examining the area of international finance.

This is a textbook teaching concepts to students studying international financial markets. There are 5 parts: Foundations of International Financial Management which includes the topics of globalization, international financial systems, balance of payments, and corporate governance; The Foreign Exchange Market, Exchange Rate Determination, and Currency Derivatives; Foreign Exchange Exposure and Management; World Financial Markets and Institutions including the topics of banking, bonds equity, and interest rate/currency swaps; and Financial Management of the Multinational Firm.

Presents data and analysis information on the external debt of developing countries, based on actual flows and debt related transactions reported to the World Bank Debtor Reporting System (DRS) by 128 developing countries.

This two volume set offers a collection of papers from scholars in the field of international finance. The topics covered include the competitiveness of national currencies, the balance of trade and the balance of payments. Annotation by Books In Print.

Publisher's Description: International finance is the branch of economics that studies the dynamics of exchange rates, foreign investment, and how these affect international trade. In a globalizing world, the policies of various central banks and similar institutions impact large and small players alike. This new book presents new and important research on issues of interest in international finance and monetary policy.

This work covers the major traditional and modern theories and empirical and applied topics in the field of international finance. It is an evaluation of empirical evidence of theories with extensive treatment of the most recent literature. The third edition of this internationally renowned and respected text is an ideal introduction to the subject of international finance. Theory is clearly explained and constantly related to the the realities of the modern world economy. The book discusses the theories and differing policies of the balance of payments, exchange rates and the international monetary system. Annotation by Books In Print.

The book is organized into five categories of interest: exchange rates and risk management, international financial markets and institutions, international investing, international financial management, and special topics. Individual chapters cover market integration, financial crisis, and the links between financial markets and development.

This book examines the U.S. international trade finance system, including the banks that finance trade; the U.S. Export-Import Bank, which guarantees and insures those trade credits; the Foreign Credit Insurance Association, which insures trade credits; the Public Export Funding Corporation, which makes loans to foreign buyers of U.S. exports; and the federal, state, and local agencies and private institutions that facilitate U.S. trade. Major foreign export credit agencies are discussed and compared with the American system, which is the most comprehensive in the world in its facilitation of financing U.S. export trade. Presents an in-depth examination of the U.S. international trade finance system. Annotation by Books In Print.

This book offers students, practitioners and activists a critical introduction to the major institutions that make up the multilateral development system. The mandate of multilateral institutions defines them as technical & functional institutions. This text challenges that view, arguing that they are political organizations & that their programmes have a significant impact on the domestic policies of the many countries in which they are involved. Annotation by Books In Print.

The author guides students through current debates about global finance and discusses the extent to which the development of a global marketplace affects our daily lives. He examines the complex networks of public-sector and non-governmental institutions and practices that facilitate the globalization of finance and provide an emerging set of arrangements for regulating it. Synopsis by Books In Print.

This paper compares key characteristics of banking systems across countries. A basic premise underlying our review is that the increasing globalization of banking and finance mandate a broad, cross-country perspective on banking issues. Indeed, cross-country comparisons can add insight into basic issues in banking that may not emerge, or are only partially discernible, from single-country analyses. With this in mind, we review representative research dealing with four fundamental aspects of international banking: the structure of banking, with emphasis on the connection between the development of the banking system and economic growth; banking industry performance; banking regulation, supervision, and corporate governance; and banking crises. We augment each of these discussions with an examination of the cross-country "landscape" of key dimensions of banking, using data for over 50 countries. Summary from the Office of the Comptroller of the Currency web site.

This paper reviews the recent literature on cross-border banking, with a focus on policy implications. Cross-border banking has increased sharply in recent decades, particularly in the form of entry, and has affected the development of financial systems, access to financial services, and stability. Reviewing the empirical literature, the author finds much, although not uniform, evidence that cross-border banking supports the development of an efficient and stable financial system that offers a wide access to quality financial services at low cost. But as better financial systems have more cross-border banking, the relationship between cross-border banking and competitiveness has to be carefully judged. While developing countries have some special conditions, provided a minimum degree of oversight is in place, they experience effects similar to industrial countries. There are some questions, though, on the effects of cross-border banking on lending based on softer information and on stability. Relevant experiences from capital markets show that the degree of cross-border financial activities can affect local market sustainability and there can be path dependency when opening up to cross-border competition. Reviewing the fast changing landscape of financial services provision, the author argues that cross-border banking highlights the increased importance of competition policy in financial services provision. This competition policy cannot be traditional, institutional based, but will need to resemble that used in other network industries. Furthermore, with globalization accelerating, competition policy will need to be global, supported by greater cross-border institutional collaboration and using the General Agreement on Trade in Services (GATS) process and the disciplines of the World Trade Organization. GATS can be of special value to developing countries as it provides a binding, pro-competition framework that has proven more difficult to establish otherwise. Summary from the World Bank web site.

It has become increasingly important in a globalized world to understand offshore finance wand its connection to international banking. This book has a detailed analysis of the global offshore environment and includes an overview at the ongoing work of the Financial Stability Forum, the Financial Action Task Force, the IMF, the World Bank, and the OECD.

This book outlines the various influences on the evolution of international banking and analyzes the industry, distinguishing between international trade in banking services and foreign direct investment by banks.

Includes discussion on Global Financial Crisis and its many effects on banking, regulation and prospective strategic adjustments for the industry. Broken down into three parts: Global Capital-raising and Trading with a close look at global bond and equity markets, derivatives and swaps, and foreign exchange and money markets; Advisory and Investment Services with a look at M&A, privatization, hedge funds, and private banking; and Competitive Strategies with discussion about what drives and changes global banking as well as discussion on risk, regulatory/compliance issues, and strategy.

This volume consists of a collection of edited papers from respected academics worldwide on the latest developments in asset allocation, portfolio management and international investments, including original scientific articles that will help the investor to identify new trends. These expert studies can effectively improve the risk and return characteristics of anyone's investment portfolio. Annotation by Books in Print

This innovative book provides a way to stay informed and learn the economic indicators that affect global capital as well as the new financial rules carved out by the market. Synopsis by Books In Print.

In Foreign Direct Investment, Imad A. Moosa presents a survey of the vast body of literature and ideas relating to foreign direct investment that will be invaluable as a reference work for all these groups. He provides concise definition and analysis of the theories behind foreign direct investment, and considers factors affecting its implementation. The impact of foreign direct investment on economic development, host countries and the growth of multinationals, together with methods for evaluating foreign direct investment projects are discussed. Synopsis by Books in Print.

Sobel explores the reawakening of the international financial markets, mapping their extraordinary transformation since the early 1960s and discussing the role of politics in that metamorphosis. The author then offers a fresh understanding of the systematic differences in access for borrowers in this rapidly transforming and expanding global capital pool. Annotation by Books In Print.

Reveals new methodologies for asset pricing within a global asset allocation framework. Contains cutting-edge empirical research on global markets and sectors of the global economy. Introduces the Black-Litterman model and how it can be used to improve global asset allocation decisions. Annotation by Books In Print.

This is project from the International Finance Corporation of the World Bank. There are reports on most countries and topics related to starting or doing business in individual countries. There are also other research reports for those wishing to do international business like reports on Entrepreneurship and firm performance and Legal origin, regulation and institutions. There is also a Law Library which should help international business entrepreneurs with some legal information.

Provides long-term financial and economic data, covering over 150 countries. Subscribers have access to over 6,500 historical and current data series. According to the publisher's web site, the database includes historical data on: U.S. Stock markets from 1800; Exchange rates from 1590; Interest rates from 1700; Commodities from 1500; Inflation from 1264; Total returns from 1700; and foreign stock markets from 1690.

The article includes a general overview of the global financial system, a brief
history of the world financial system, information on the institutions and participants
making up the global financial system, also provides links to major events and further
discussions related to the topic.

The Institute of International Finance, Inc. (IIF), is the world’s only global association of financial institutions. Much of the content is available to members only but some content is available freely. Analysis on reports on economic research, capital markets, and regulatory affairs have an international scope with special attention to sub Saharan Africa, Asia, Latin America, and Emerging Europe.

IFC's web site provides information and economic and financial studies
on the different regions, reports on various sectors and sub-sectors, and environment & social
development reports. Other resources include news, and links to IFC research &
publications.

A comprehensive publication published by Professor Steven Suranovic that examines
the principals and concepts of international finance. The site also allows the downloading of
each chapter in PDF format.

IOSCO's web site has an online IOSCO Library which includes a collection
of public documents, publications, reports, and press releases. Other resources
on the web site consist of the Joint Forum, a cooperative cross-sector forum comprised of the IOSCO,
the Bank for International Settlements, and the International Association of
Insurance Supervisors. A list of publicly released report of the Joint Forum can be found in the Library
Section of the IOSCO or the Joint Forum library section. There are also links
to other international financial institutions and organizations.

This web site provides links to publications, such as the Institute's
Annual Global Survey, which covers 38 countries and the EU intended to contribute
to the understanding of the trends toward globalization of financial markets and regulatory
systems worldwide; the Focus and News, describes the latest legislative and
regulatory and tax developments; a link to Legislative & Regulatory issues
covers various related topics; and a link to Comment Letters and Speeches.
The archive for the Institute's publications and reports dates back to 1998.

The homepage for all IMF publications and reports. The web site has
links to IMF recent titles, periodicals, IMF Policy Papers, research programs,
Country and Economic Reports, as well as the World Economic Outlook, and IMF's International Financial
Statistics Database.

Additional works on international finance in the Library of Congress may be identified by searching the Online Catalog under appropriate Library of Congress subject headings. Choose the topics you wish to search from the following list of Library of Congress subject headings to link directly to the Catalog and automatically execute a search for the subject selected. Please be aware that during periods of heavy use you may encounter delays in accessing the catalog. Please see the individual sections of this guide for catalog searches relating to those topics. For assistance in locating the many other subject headings which relate to this subject, please consult a reference librarian.